Shanghai Jahwa United Co., Ltd. is the oldest cosmetics company in China, with an annual main business turnover of more than 3 billion yuan, and its profitability has repeatedly ranked first among its peers. In the past three years, Shanghai Jahwa has maintained an annual sales revenue growth rate of more than 30% and is one of the largest cosmetics companies in China. The first bottle of two-in-one shampoo, the first bottle of hair care styling mousse, the first bottle of mixed perfume, the first hand cream on the Chinese market... This series of modern daily chemical products originated from a Shanghai family. change. The company owns the only two well-known cosmetics trademarks in China, Mejiajin and Liushen, as well as famous brands such as "Qingfei", "Lumei", "Gaofu", "Herborist", "Shuxin" and "Piaosa".
Facing fierce and powerful foreign competitors, "Liu Shen" has grasped the special taste of Chinese consumers - trust in traditional Chinese medicine culture, and thus established the unique positioning of its products - Body wash with traditional Chinese medicine ingredients has established a strong market segmentation for itself. Under the strong attack of multinational companies such as Procter & Gamble and Unilever, the strategy of "Liu Shen" shower gel is a beautiful illustration of how Chinese local companies can take advantage of local advantages.
Since the end of the 20th century, internationally renowned daily chemical groups have begun to regard the Chinese market as one of the emerging sources of profits. They rely on their mature product systems, advanced marketing and promotion methods, and strong financial guarantees to expand their business in China. The market is making waves. For a time, products from P&G, UNILEVER, KAO and other companies filled store shelves, and consumers were proud to use these imported brands; while some national brands gradually disappeared under strong competitive pressure, and some were acquired by foreign groups. Objects, and most of the rest are struggling to support themselves. In the shower gel market, P&G's Safeguard and Unilever's Lux have become dazzling stars.
However, Liushen has established a strong national brand image by virtue of its distinctive localized brand cultural connotation.
Liu Shen, or "Six Gods," is the name of a prescription traditionally used by Chinese medicine to treat prickly heat and other summer ailments, the main ingredients of which are pearl powder and musk. According to this prescription, in 1993, Shanghai Jahwa launched Liushen toilet water for summer use. With the clear product appeal of “removing prickly heat, relieving itching, and refreshing the mind”, this brand quickly won 60% of the toilet water market share.
Two years later, Shanghai Jahwa launched "Liu Shen" shower gel, specializing in China's summer personal care products market.
The launch of "Liu Shen" shower gel, on the one hand, is to maximize the value of the "Liu Shen" brand in view of the strong brand effect that the "Liu Shen" brand has in the market; on the other hand, in the face of Facing the challenge of multinational companies, Shanghai Jahwa has grasped the special tastes of Chinese consumers - they believe more in traditional Chinese medicine in some areas. After analyzing the consumer group, Shanghai Jahwa launched "Liu Shen" shower gel, targeting users of "Liu Shen" toilet water and consumers who have long favored traditional Chinese medicine products.
After the product was launched, it quickly won the majority of users of "Liu Shen" toilet water. By 1998, it occupied the largest market share in China's gradually established shower gel market. "Liu Shen" bath water Lu has become China's number one brand of personal care products in summer.
Daily chemical products are a product category with relatively high emotional added value, which means that consumers’ needs are diverse and personalized. Through the brand, it reflects the functional and emotional benefits that consumers are concerned about, and reflects the value, culture and personality of the product.
Although multinational companies have considerable strength and prestigious brands, they lack understanding of the tastes and needs of local consumers. In order to maintain the standardization of global operations, they mainly consider developed markets in product design. demand, and cannot provide products that meet local consumer preferences based on the localized needs of emerging markets. Their main target customers are urban residents who pursue fashion. Take young people in mainland China as an example. They tend to be highly enthusiastic about all things Western. Shanghai Jahwa did not compete with foreign manufacturers for this market segment, but focused its sales on a larger area: loyal customers who firmly believed in the efficacy of certain traditional ingredients and provided relatively low prices.